We have analyzed more than 80 names to short list the ones which we felt compelling and undervalued — and have re-examined them as investment opportunities at current levels, explains Jim Osman, Founder & CEO of The Edge. As a result, we have determined that Ziff-Davis (ZD) — an Internet services firm — ranks as a current top pick among the “fallen” spinoff stocks. We note that the shares are down 33% year-to-date.
Previous Break-Up: With the spinoff of Cloud Consensus Solutions, Inc. (CCSI) in October 2021, Ziff-Davis was left a nimble online services and advertisement-based business. We also view the company as a compelling future acquisition target for an enterprising company looking for exposure on ZD’s numerous platforms and services.
Recent Insider Buy is a Positive: On August 16, 2022, Sarah Fay (Chair of the Board since May 2022, with ZD since 2018) spent $100k to purchase 1,162 shares of ZD at an average price of $86.49 increasing her stake by 11.8% to 11,070 total shares (0.02% stake). Ms. Fay is also a Managing Director at Boston-based venture capital firm Glasswing Ventures, which invests in AI-based start-ups. We believe her positive business track record and her newly increased stake in ZD is a positive for the company.